Limited Liability Company Formation
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Sharjah Mainland - Limited Liability Company Formation
Sharjah, one of the seven emirates in the United Arab Emirates (UAE), has gained prominence as a thriving business hub in recent years. The strategic location, business-friendly environment, and diverse economy make it an attractive destination for entrepreneurs looking to establish a Limited Liability Company (LLC).
Understanding Sharjah Mainland
Sharjah Mainland, also known as the Sharjah Economic Development Department (SEDD) jurisdiction, offers a prime location for business activities. Unlike free zones, Sharjah Mainland allows companies to conduct business across the UAE and globally without limitations. Sharjah Limited liability company setup provides numerous advantages, such as access to a larger customer base and the ability to bid for government contracts.
Sharjah Limited Liability Company Formation – An overview
A Limited Liability Corporation (LLC) stands as one of the prominent corporate entities in the United Arab Emirates (UAE) designed primarily for conducting commercial operations. An LLC necessitates a minimum of two individuals and can include up to a maximum of fifty individuals, all of whom bear limited liability, meaning their financial obligations are restricted to the extent of their investments in the company.
The distribution of profits and losses within an LLC can be arranged in consultation with regional, international partners, or third-party stakeholders. However, shares of such companies cannot be publicly traded, and they are not authorized to issue negotiable securities.
It’s important to note that, as per the Commercial Companies Act, LLCs enjoy the freedom to engage in a wide spectrum of commercial activities, except for those related to banking, insurance, and third-party investment of funds, unless they obtain prior approval from relevant authorities such as the UAE Central Bank or other relevant institutions.
LLC Company Formation Sharjah - Key Benefits
One of the most significant advantages of Sharjah Limited liability company setup is that foreign investors can own up to 100% of the company without the need for a local partner.
Sharjah Mainland permits a diverse range of business activities, allowing entrepreneurs to explore various sectors such as trading, manufacturing, services, and more.
Unlike some other jurisdictions, Sharjah Mainland LLCs are not subject to currency restrictions, making it easier to conduct international transactions.
Requirements for Sharjah Limited liability company setup
Choose a unique trade name for your LLC and get it approved by the Department of Economic Development (DED). You must lease physical office space in Sharjah for your LLC. Obtain initial approval from the SEDD, which involves submitting the required documents and obtaining a letter of approval.
Next, draft an MOA that outlines the company’s activities, shareholding structure, and other important details. Ensure to notarize this document.
Submit the license application along with the required documents to the SEDD. After receiving the license, the next step is to register your employees with the Ministry of Human Resources and Emiratisation (MOHRE) and ensure compliance with labor laws. If applicable, register for Value Added Tax (VAT) with the Federal Tax Authority (FTA) and adhere to tax regulations.
Also choose a reputable bank in the UAE to open a corporate bank account for your LLC. The last yet crucial step is to ensure ongoing compliance with local regulations and renew your license annually. Note that these requirements may vary depending on your business and changes in regulations.
Documentation Required
The following set of documents must be provided to the Dubai Department of Economic Development (DED) for processing:
- License application form
- Brand certificate
- Copies of the passport and national identity card (UAE national identity ID) of the applicant
- Certified “No Objection” letter
- Copy of the expatriate’s passport and relevant visa or residence permit
- Identity card of the expatriate
- Technical assessment study reports
- Any required legal approvals
- Partnership contract (Memorandum) duly attested by a Notary Public
- Approval from the Ministry of Economy
- Approval from the legal affairs department
- Certified copy of the lease contract
- Property map image or property certificate
These documents collectively comprise the essential paperwork needed for processing your application with the DED.
Opting for a Sharjah Limited liability company setup is a strategic move for entrepreneurs looking to tap into the UAE’s thriving business environment. By following the outlined steps and fulfilling the requirements, entrepreneurs can establish a strong presence in this dynamic emirate and reap the benefits of their Sharjah Mainland LLC.
LINKS CORPORATE CONSULTANTS is your trusted partner in LLC company formation in Sharjah. Our commitment to keeping our clients informed, adapting to changing regulations, and providing tailored solutions sets us apart. For more information on how we can help you set up a business successfully in UAE, request a free consultation now.